CONNERSVILLE, Ind. ― Stant Corp., manufacturer of highly engineered fluid systems, along with certain affiliates, have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. Stant said the move was necessary in order to complete a restructuring and permanently improve its capital structure. The company expects operations to continue as usual during the reorganization process and to emerge quickly from Chapter 11 this fall.
“Following a careful review, Stant’s management and board of directors unanimously determined that a restructuring, expedited through a Chapter 11 process, represents the best long-term solution for our customers, suppliers and employees,” said Marlon Bailey, president and chief executive officer of Stant. “This process will allow us to continue operating our business as usual and to continue servicing our customers with absolutely no disruption.
“We have secured DIP financing from our existing senior lenders and an affiliate of H.I.G. Capital LLC, which will provide liquidity during this process to ensure an uninterrupted supply of goods and services and provide for other cash requirements; fund liabilities; and provide contingency funding to handle any potential unexpected needs,“ Bailey added.
Additionally, Stant has secured a fully financed stalking horse bid from an affiliate of H.I.G. Capital, which is being financed by the company’s senior lender group. The bid, which is subject to the court approved process, is intended to provide the company with a smooth and quick emergence from bankruptcy.
